Elon Musk testifies in Tesla tweet fraud trial.
Elon Musk, the CEO of Tesla, is currently in the middle of a trial concerning a controversial tweet he posted in August 2018. In the tweet, Musk said he was considering taking Tesla private at $420 per share. Musk testified in the trial that the tweet was genuine, and that the $420 price was not a joke. He also said that the Saudi Arabian government had expressed interest in taking Tesla private.
The Securities and Exchange Commission (SEC) is suing Musk for allegedly making false and misleading statements with the tweet. They allege that he had not secured funding for the potential transaction, and that the tweet caused Tesla’s stock price to rise. If found guilty, Musk could face financial penalties and be barred from serving as an officer or director of any publicly traded company.
H. Gregory Baker, a former senior counsel at the SEC, weighed in on the case. He said that Musk’s tweet was a violation of securities laws, and that the SEC could make an example out of him. Baker believes that the SEC is trying to send a message to other executives that they should be more careful when making statements on social media.
The case is ongoing, and its outcome could have a lasting impact on Musk’s career. If found guilty, he may be barred from leading a publicly traded company and face financial penalties. Even if he is found not guilty, the SEC’s actions may make other executives more cautious when making statements on social media. The trial is a reminder that even the most influential people are not immune to the law.